SVTP investment gurus come on in..

[SciFiHiFi]

not quite....mortgages are compound interest and not simple interest

a house payment is the highest interest loan you can have...its nearly 100% over the life of the loan (i.e. a $150k house ends up costing you $300k).

pay the house off first

This probably the best post you've ever made in your SVTP career.

The interest rate on a typical home loan is given as APR - annual percentage rate. Keyword being ANNUAL. You pay that rate on your balance YEARLY!

 

[ON D BIT]

Thanks so much guys. Trust I wish I wasn't in line to get the "settlement" but oh well. I think I'm going to pay the house off, put a chunk in savings and college fund and blow 2k. Then the money I'm saving on house I'm going to double up on the cars and pay them off in a year and half..... Then no notes...... May not be the perfect way but no house note I think would be sweet! I don't have credit cards or anything all I have is a house and two car notes.

I would pay off the cars first. Stick with the Dave Ramsey plan, to put it simply it works!

The guy has been rich twice, once with other peoples money(had 4 million in real estate in the 80's) and went bankrupt. He then built his fortune again, this time with no loans at all. He has talked to tens of thousands of millionaires in his lifetime and based on their info came up with the seven steps you see before you(in my first post).

Pay off all other debt first then a 6 month emergancy fund. If anything is left put that towards the house!